Deisred (target) operating income amount = $100,000

What is the company’s contribution margin per unit?
July 16, 2021
Evaluate examples of how top companies are creating dynamic organizations for their employees.
July 16, 2021

Deisred (target) operating income amount = $100,000

Acme Medical Supply Company desires a target operating income amount of $100,000, with assumptions inputs as follows:

  • Deisred (target) operating income amount = $100,000
  • Unit Price for sales = $80
  • Variable cost per unit = $60
  • Total fixed cost = $60,000

Compute the required revenue to achieve the target operating income and compute a contribution income statement to prove the totals.

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